China Natural Resources Inc. (NASDAQ:CHNR) Stock Takes a Hit After Earnings
China Natural Resources Inc. (NASDAQ:CHNR) fell 7% after the company announced its unaudited financial results for the six months ending June 30, 2021.
Market Stats
On Friday, CHNR stock fell 7.35% at $1.26 with more than 100k shares, compared to its average volume of 69k shares. The stock has moved within a range of $1.2500 – 1.3400 after opening the trade at $1.34.
Reports First Half 2021 Financial Results
Also, the company has reconfirmed its diversification and expansion strategy through which it’s carrying due diligence with a focus on compelling business prospects in the non-natural resources and healthcare sectors. Already the company has completed a significant investment in Shanghai Onway Environmental Development Co., Ltd., which is primarily engaged in providing rural wastewater treatment equipment, procurement, engineering, and construction services in the wastewater treatment industry in China, as part of its strategy.
During the period under review, the company had only then mining and exploration segment as the operating unit, and sales were nil relative to $1.06 million a year ago. In 2020, sales were from the trading copper ore. China Natural Resources’ subsidiary Baynnaoer mining stopped trading copper in 2H 2020 because of volatility in the copper price. So in the coming weeks, CHNR is worth watching.
Key Quote
Mr. Wong Wah On Edward, Chairman of the Company, commented, “Our financial results do not yet reflect the work we have done – or plans we have underway – to diversify our company and revenue base. It will take additional time for our investments and strategy to drive consistent revenue and profit growth, but we have made considerable strides and remain very optimistic. We are confident that by diversifying into the healthcare and other non-natural resources sectors we will be able to gain a more sustainable, predictable business, one capable of generating higher returns for investors.”
Traders Corner
CHNR stock is trading below the 20-Day and 200-Day Moving averages of $1.28 and $1.55 respectively. However, the stock is trading above 50-Day moving average of $1.25. The stock is down 9% in the past 3-month.
